The curse of the 'Chav' pound: Burberry will shut stores in 'unluxurious' areas in a bid to remarket the brand exclusively to the super rich after shares tumble 10%

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Burberry is set to close stores across the country in a bid to remarket itself following a 10 per cent drop in shares.

The high-end fashion house - arguably Britain's premier luxury label - will close outlets in department stores and shut shops that are not found in or near wealthy communities.

In the early 2000s, the brand spawned knock-off goods popping up at market stalls and became known as 'chav check', associated with football hooligans and anti-social behaviour.

But in the last decade, Burberry went from chav to chic once again, counting celebrities including Victoria Beckham, Kate Moss and the Duchess of Cambridge among its fans.

Despite this, the celebrity clientele have failed to stop the fashion giant's shares slumping following disappointing earnings and a costly strategy overhaul.

Back in 2002, the design had been dubbed 'chav check' after it was embraced by far from A-list stars like actress Danniella Westbrook

'Chav Chic': In the early 2000s, the brand was so widespread it spawned knock-offs popping up at market stalls around the world and was known as 'chav check'. It counted high-profile celebrities including Nicky Hilton (pictured left in 2002), and Victoria Beckham (right in 2000) among its fans

Burberry recently announced that former boss and chief creative officer Christopher Bailey will step down from the board next year after 17 years - signalling the way for more change. Pictured, Cara Delevingne, Jourdan Dunn (left) and Edie Campbell (centre) in a Burberry beauty advertisement

The high-end fashion house will ditch its outlets within department stores, and shut shops that are not found in or near wealthy communities. Pictured, Burberry's flagship store in Bond Street, London

This comes after Burberry recently announced that former boss and chief creative officer Christopher Bailey will step down from the board next year after 17 years. 

The plans are part of new chief executive Marco Gobbetti's vision for the company, in a bid to 'sharpen' the brand's positioning.  

Gobbetti, who took over as CEO from Bailey in July, said Burberry had been outpaced in recent years by French and Italian rivals in the luxury fashion segment of the market. 

In the UK, Burberry has standalone stores in London, Edinburgh and Manchester, as well as outlets in the following: Harrods, Selfridges, Westfield and Heathrow Airport in London, Selfridges in Birmingham and Selfridges in Manchester.

The group's wholesale arm, which generally comprises outlets in department stores, amounts for around 30 per cent of the group's total sales.  

Remaining high-street stores will be given a luxury face-lift, focusing on selling leather goods and fashion.

The retailer remained tight-lipped on how many outlets are being closed and how many jobs are at stake. 

Kate Middleton, Gwyneth Paltrow and Keira Knightley are among the stars who wear Burberry — the deluxe, catwalk Burberry Prorsum line, the rainwear and bags.  

Rita Ora - seen here leaving a hotel earlier this month - is a big fan of Burberry and often sports the iconic checks from head-to-toe

Romeo Beckham, seen here in a 2014 advertising campaign, wears the £315 'icon' cashmere scarf in Burberry's distinctive camel, black, white and red check - but even Brand Beckham couldn't save the iconic label

Cara Delevingne and Doctor Who actor Matt Smith are among the British celebrities who have lent their name to the brand 

Cara Delevingne on the runway at the Burberry Prorsum autumn/winter 2014/15 collection shown at London Fashion Week

Burberry did not say how many stores it will 'rationalise' or the number of staff affected by the move

Former Take That star Robbie Williams wraps up in an iconic Burberry scarf in 2001 (left) while Darren Day sports a similar look in 2004 (right)

Such was the popularity of the brand in the 2000s, Welsh rap group Goldie Lookin Chain organised a 'chav rally' in 2004 - complete with a 'Burberry' car

Nick Swardson, Keili Lefkowitz, Jamie Kennedy, Kal Penn in the 2003 film Malibu's Most Wanted - with Swardson sporting the typical 'chav' look 

Kate Moss, new Vogue editor Edward Enninful, former Burberry CEO Christopher Bailey and Naomi Campbell at a Burberry Show in September 2017

HOW BURBERRY WENT FROM CHIC TO CHAV...AND BACK AGAIN 

Oasis star Liam Gallagher and former All Saints singer Nicole Appleton pictured in Burberry in 2000

A decade ago Burberry seemed in crisis and that check was less icon, more albatross. 

Far too widespread for its own good, it had become known as ‘chav check’.

Immediately recognisable — and affordable, on items such as a £50 baseball cap — it was accessible luxury that became far too accessible. Worse still, it was easy to copy and spawned an industry of counterfeits.

Real or fake, it was on everything from bikinis to bags, favoured by football hooligans and — most spectacularly — worn head to toe (including toddler and buggy) by EastEnders actress Danniella Westbrook in 2002. 

It is hard to remember another single photograph doing a brand so much damage. In the words of social commentator Peter York, author of the Official Sloane Ranger Handbook: ‘It was associated with people who did bad stuff, who went wild on the terraces. Quite a lot of people thought that Burberry would be worn by the person who mugged them.’ 

Eddie Redmayne and Cara Delevingne in a Burberry advertising campaign

Some venues banned anyone wearing it, so entrenched was its association with anti-social behaviour.

It was at the height of its ‘chav’ popularity, most pertinently illustrated by the Danniella Westbrook overload. The brand had become a victim of its own success. 

But the firm refused to admit defeat. Steps were taken to stop the rot — the caps went out of production, and the use of check was reduced across the board. In 2004 Bailey was promoted to Creative Director. Burberry was becoming a more serious player.

In 2006, a turning point came in the form of another American CEO with an impressive CV, Angela Ahrendts. 

She arrived and, together with Bailey, performed the remarkable feat of carving out a strategy to move Burberry firmly back off the backs of the undesirables into the ‘hot’ zone, using a combination of design skill, marketing savvy and business sense.

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Christopher Bailey's departure clears the path for Mr Gobbetti to stamp his mark on Burberry, as he also embarks on an ambitious cost-cutting plan. 

He said: 'Now is the right time for Burberry to implement the next phase of its transformation.

'By re-energising our product and customer experience to establish our position firmly in luxury, we will play in the most rewarding, enduring segment of the market.

'We have the foundations to build on and the team to execute our plans. This will enable us to drive sustainable growth and higher margins over time, whilst continuing to deliver attractive returns to shareholders.'

The company will take a £15 million restructuring hit linked to the store closures.

Burberry made the announcement alongside first-half results, which saw the firm book a 26 per cent rise in pre-tax profits to £128 million.

Like-for-like sales rose 4 per cent as revenues came in at £1.26 billion in the six months to September 30.

From left: Brooklyn, Cruz, Victoria, Romeo, Harper and David Beckham, editor-in-chief of American Vogue Anna Wintour and Julia Gorden at the Burberry 'London in Los Angeles' event in 2015

An advertisement for Burberry's 'practical and becoming motor dress'

Lady Annunciata Asquith and Patrick Lichfield wearing Burberry fashion on Exeter golf course in 2005

Rita Ora sported bold head-to-toe Burberry at the Radio 1 teen awards in October 2017

Rosie Huntington-Whiteley and James Bay in the Burberry Festive Campaign shot by Mario Testino

Romeo Beckham (left) was unveiled as one of the younger faces of the brand. He is seen here in the Burberry Spring Summer 2013 campaign

Singer Rita Ora is seen here on the left sporting an Adidas crop top with wrap-around Burberry mini skirt  

Actress Emma Watson was another A-list star who modelled for Burberry

Golden touch: It's thanks to Christoper Bailey, centre, that stars like Kate Beckinsale, left, and Rosie Huntington-Whiteley are keen to be seen in Burberry

Approved by style icons: The Duchess of Cambridge, left, and Keira Knightley in Burberry coats

'I am pleased with our performance in the half, with strong double-digit underlying profit growth,' said Mr Gobbetti.

'Consumers responded positively to fashion and newness, particularly in rainwear and leather goods.

'Digital revenue grew in all regions, led by mobile, while growth was strongest in our own stores in Asia Pacific.'

Shares in Burberry plummeted 10% following the strategy update as investors digested the news.

Steve Clayton, manager of the Hargreaves Lansdown Select UK Growth Shares fund, which holds a 3.8 per cent position in Burberry, said: 'The market is now being asked to back him in a 'no pain, no gain' strategy shift. Early evidence suggests Mr Gobbetti has not carried the crowd with him.

'Mr Gobbetti wants to take Burberry out of all but the most exclusive stores, starting in the US wholesale channel, and then more widely. Product is to be reinvigorated, and accessories emphasised. It's a text-book luxury brand repositioning exercise.

'But this will take time and in the near term, sales growth will be held back and the group must invest more to achieve its goals.

'Shareholders are being asked to accept a couple of years of modest progress, in order to build a stronger proposition longer term.'